The Government was today urged to hack through planning red tape to unlock more than £50 billion of private sector investment in major transport infrastructure.
Campaign group BusinessLDN and consultancy Arcadis warned that without streamlining of Britain’s “byzantine planning system” the capital will fall behind global city competitors.
A new report highlights five key projects: Heathrow third runway (£49 billion), Gatwick’s second runway (£2.2 billion), terminal expansion at Stansted (£1.1 billion), new berths at the London Gateway Port and Logistics Park (£1 billion), and upgrading St. Pancras International Station alongside increased access to the Temple Mills rail depot (£265 million).
The report ‘Pathway to Delivery: Expanding London’s Global Connections’ calls on ministers to streamline the process for applications for major projects and reducing delays, and changes to the business rates system which would encourage and enable investment.
John Dickie, chief executive at BusinessLDN, said: “The Government has rightly invested significant political capital by backing these projects and it now needs to seize the moment by ensuring they move from the drawing board to delivery as quickly as possible.
“That will require ministers to ensure that all parts of Whitehall and regulators pull in support of these expansion plans so they do not get bogged down by red tape. Accelerating reforms to the UK’s byzantine planning system and keeping a close eye on how tax changes affect the return on investment is also vital to unlock billions of pounds of private capital and boost growth.”
Peter Hogg, country director for the United Kingdom and Ireland at Arcadis said: “This analysis shows London can unlock at least £53.5 billion of private investment from investing in our ports, airports, and railway hubs, but only if we remove the barriers standing in the way. Government must urgently align regulators with its growth mission, speed up and simplify planning for major projects, and reconsider business‑rates changes that make our global ports less competitive. The next round of policy decisions will determine whether this investment comes to London or to international rivals, with the wrong outcome leading to a lost generation of growth."
The report outlines challenges that must be addressed, including airspace reform, and access to the electricity grid.
It calls for the creation of cross-departmental Whitehall teams “which troubleshoot issues as they emerge, alongside greater encouragement for Mayors and other local political leaders.”.
It also says the priorities of key regulators such as the Civil Aviation Authority and Office of Road and Rail must be aligned with the Government’s focus on economic growth.” The report argues: “The Government must strike a balance between effective regulation and a business environment that enables operators to invest, avoiding the kind of regulatory uncertainty which can cause projects to be delayed or abandoned.
In addition the Government must build on its Planning and Infrastructure Act “to create a planning system that better supports the delivery of major projects, reduces delays to getting shovels in the ground, and ensures operators are provided with reasonable conditions for expansion.
finally it urges reform of the business rates system “to ensure that tax changes do not discourage long-term investment or undermine the UK’s international competitiveness.”
